A wave of concern is spreading among property owners across France, in light of recent actions by the tax administration. The new weapon of the tax authorities? Artificial intelligence (AI), a cutting-edge tool used to analyze a vast amount of data, tracking irregularities with formidable efficiency.
Artificial intelligence: a formidable tool against tax omission
Advancements in the field of AI invite property owners to exercise increased vigilance. Indeed, the tool proves particularly effective at spotting omissions and non-declarations. The example of the 140,000 undeclared swimming pools identified in 2022 illustrates this technology’s ability to uncover omitted elements that significantly lead to revenue losses for the state.
Garden sheds under the tax authorities’ scrutiny
Following the hunt for swimming pools, it is now garden sheds that are attracting the interest of tax inspectors. These small structures, when exceeding an area of 5 m², are indeed subject to declaration obligations and come with a development tax. Failing to complete these steps can lead to a significant tax reassessment, with penalties and surcharges that increase the bill.
What risks for property owners in violation?
Non-compliance with declaration obligations can be extremely costly for careless or dishonest property owners. They expose themselves to reassessments for years of uncollected property taxes, along with penalties that can reach 80% for deliberate non-compliance, and an additional 10% for failure to declare after a formal notice. Not to mention the possibility of criminal proceedings in cases of blatant fraud.
Getting in compliance: a necessity more than an option
In this context of increased scrutiny, regularization appears to be more than essential. It is better to anticipate the tax authorities’ actions and declare one’s installations rather than suffer the consequences of a tax audit. A voluntary approach to comply with the legislation proves to be much less costly than the total of retroactive taxes and potential financial penalties.
The tax administration at the forefront of technology: an inevitable evolution?
The growing digitization of administrative tools and the modernization of control methods herald a new era for the French tax authorities. Beyond the repressive aspect, this trend aims for a more pronounced tax justice and a more accurate collection of due taxes, contributing to a better distribution of public charges. In conclusion, in light of the strengthened control capabilities of the tax authorities, supported by AI, property owners must introspect regarding their tax situation. Omissions, whether involuntary or intentional, are no longer viable options, as technology now allows them to be identified with formidable precision. It is time to get in compliance to avoid unpleasant surprises, and this article, by shedding light on the matter, encourages action and not panic.
